Lincoln National Bank v. Commissioner

*1307OPINION.

Sternhagen:

The respondent has held that the 1,507 shares of Emerson stock were received by decedent as a dividend, and that their agreed value was income free from normal tax and subject to surtax. Petitioner insists that they were received as a gift, and therefore excluded from decedent’s gross income by virtue of section 213(b) (3).

There is testimony by Floyd P. and Ennalls Waggaman that the decedent had devoted himself earnestly and successfully to preserving and expanding the estate of John F. Waggaman, their father, of which they were beneficiaries, and that for his long…